Updated on
Summary Gold was at $1,762.00 at 0600 GMT compared with $1,763.55 late on Wednesday.
Asian markets and the euro fell on Thursday as a Standard & Poors downgrade of Spains credit rating overshadowed an upbeat assessment of the US economy by the Federal Reserve.Traders were also following a lead from Wall Street and European investors in the wake of the IMFs decision to slash its global growth forecasts, while concerns over the upcoming corporate earnings season also weighed on sentiment.Eyes are also on a meeting later in the day of the finance ministers of the Group of Seven leading industrialised nations, which will take place in Tokyo.Tokyo slipped 0.58 percent, or 49.45 points, to 8,546.78, with the territorial spat between Japan and China continuing to sit heavily on confidence.Sydney fell 0.16 percent, or 7.2 points, to 4,483.5 and Seoul lost 0.78 percent, or 15.13 points, to 1,933.09.In the afternoon Hong Kong was 0.10 percent lower and Shanghai was 0.41 percent off.Standard & Poors said late Wednesday it had cut Spains sovereign debt rating by two notches to just above junk level,citing the deepening recession and strains from the countrys troubled banks.The downgrade reflects our view of mounting risks to Spains public finances, due to rising economic and political pressures, the ratings agency said.The deepening economic recession is limiting the Spanish governments policy options, it said, adding that joblessness at 25 percent and tighter spending will likely intensify social conflict and tensions in the country.The news is the latest to stoke eurozone concerns as Madrid refuses to ask for an international bailout, which would in turn kickstart a European Central Bank bond-buying programme that would lower the countrys borrowing costs.S&Ps move hit the euro, which fell to $1.2868 and 100.40 yen in early Asian trade from $1.2887 and 100.74 yen in New York late Wednesday.And the dollar slipped to 78.03 yen from 78.18 yen.The dollar got a little support from the US central banks latest outlook on the worlds number one economy.In its Beige Book report, the Fed said that economic activity generally expanded modestly since the last report six weeks earlier, when it characterised growth as only gradual.However, Wall Street was unimpressed. The Dow fell 0.95 percent, the S&P 500 dropped 0.62 percent and the Nasdaq gave up 0.43 percent.Also sapping confidence are worries over the upcoming earnings season, with most market-watchers expecting a poor batch of results reflecting a slowdown in the global economy.Adding to these fears Wednesday were comments from US aluminium giant Alcoa, which said it had cut its growth forecasts because of the slowdown in China.G7 finance ministers are set to meet to discuss the plodding global economy as well as the yens ongoing strength, which is hammering Japans economy.The gathering comes as the International Monetary Fund and World Bank prepare to hold their annual meetings. Earlier this week the IMF slashed its global growth estimates for this year and next, citing the eurozone crisis, a weak US recoveryand a slowdown in China.On oil markets New Yorks main contract, light sweet crude for delivery in November advanced 33 cents to $91.58 a barrel in the afternoon and Brent North Sea crude for November delivery gained 57 cents to $114.90.Gold was at $1,762.00 at 0600 GMT compared with $1,763.55 late on Wednesday.In other markets:-- Taipei fell 1.85 percent, or 140.29 points, to 7,451.72.Hon Hai Precision fell 3.7 percent to Tw$86.0 while TSMC shed 1.84 percent to Tw$85.5.-- Wellington fell 0.12 percent, or 4.84 points, to 3,883.30.Telecom fell 0.21 percent to NZ$2.33, Fletcher Building added 1.1 percent to NZ$7.24 and Fisher & Paykel Appliances was flat at NZ$1.23.
